Corporate Social Responsibility
Corporate governance entails machinations in practice through which company directors guarantee equality, impartiality, and transparency in the corporate’s interactions with policymakers, government, staff and the community (Linda , Cécile , & Nada , 2005). Governance includes stringent policies encompassing:
- Internal and external contracts between the company and staff and other third parties.
- Procedures of management of issues of conflict of interest
- Procedures on proper management practice.
Corporate Social Responsibility (CSR) is a practice of giving back to the community in which the company operates. It entails a mandatory complex practicum stipulated by law where organizations are required to participate actively in and comply with ethical and environmental sustainability programs (Linda, Cécile , & Nada , 2005)s.
Social responsibility and ethical practices are important tenets of business success. With increasing awareness of consumers, who expect businesses to comply with social and environmental conservation programs. Consumers, therefore, endeavor to subscribe to products and services of companies and businesses that operate ethically. CSR not only markets a company or business but also projects a good image of the company as considerate of the environment in which they operate (Parkinson, 1995). Through the support of sports and community initiatives, there is increased brand awareness in the market guaranteeing the company of a larger market share i.e. AON branding of Manchester United. Proper business image attracts investors.
Compliance with environmental conservation practices such as zero carbon emissions; fewer packaging initiatives ensure reduction in production costs that culminate in wider profit margins for the business. Furthermore, such acts of social responsibility endear a business to its consumers, stirring consumer loyalty to the business. Engaging in sustainable business practice enables a business to engage its clients directly through consumers through social media feedback forums now that they are already aware of the brand. (Parkinson, 1995) Corporate social responsibility ensures business growth through the permission of personal and professional employee growth. Positivity generated in the community is replicated at the workplace ensuring the company has motivated staff hence high productivity.
Linda , L.-D., Cécile , R., & Nada , K. K. (2005). Corporate social responsibility and stakeholder approach: a conceptual review. International Journalof Business Governance and Ethics , 1 (4), 277-301.
Parkinson, J. E. (1995). “Corporate Power and Responsibility: Issues in the Theory of Company Law,” . Bristol: Oxford University Press.